Notice that:
[tex]0.92=1-0.08.[/tex]
Therefore, we can rewrite the given equation as follows:
[tex]V=31600(1-0.08)^t.[/tex]
From the above equation, we get that the price of the car is decreasing an 8% per year.
Evaluating the given equation at t=0, we get the purchase price:
[tex]V(0)=31600(0.92)^0=31600(1)=31600.[/tex]
Answer:
The value of this car is decreasing at a rate of 8 percent per year.
The purchase price of the car was 31600 dollars.
